Turkey’s financial sector suffered its worst week in years as authorities pursued suspected Ponzi-like and international investment-fraud schemes. Authorities detained Tera Holding Chairman Emre Tezmen and several board members on September 19, issued a warrant for Pusula Holding Chairman Serdar Turhan, and arrested 191 of 239 suspects in an alleged Istanbul-based network reportedly controlled by Israeli citizens. The Capital Markets Board, known as the SPK, ordered the liquidation of approximately 130 investment funds valued at around $18.3 billion, while travel bans and asset freezes were imposed on 51 people linked to targeted financial companies. The alleged network used Turkey-based service, consulting and tourism companies, social media and online advertising to solicit forex and cryptocurrency investments, then allegedly blocked withdrawals and demanded additional payments. Authorities said losses exceeded $3 billion and seized assets worth approximately 1.5 billion Turkish lira. Investor panic, mass redemptions and liquidity shortages reportedly left two Tera funds facing about $7.5 billion in redemption defaults, while the BIST 100 fell 6% to 8% and prompted temporary trading halts on Borsa Istanbul.